Century Aluminum Operations in 2022

A Global Contributor to a Resource-Efficient Society

Century Aluminum Company is a global producer of primary aluminum with corporate headquarters in Chicago, Illinois, and operations in the United States, Iceland, and the Netherlands. We operate three aluminum smelters in the United States – in Hawesville, Kentucky (Hawesville), Robards, Kentucky (Sebree), and Mt. Holly, South Carolina (Mt. Holly) – as well as one aluminum smelter in Grundartangi, Iceland (Norðurál). These facilities produce standard-grade and value-added primary aluminum products. Our current annual production capacity is just over one million tonnes per year (tpy), which makes us the largest aluminum producer in the U.S. and responsible for roughly 1.5% of the global production of primary aluminum.

In addition to our aluminum operations, we operate a carbon anode production facility in Vlissingen, Netherlands, which supplies carbon anodes to Norðurál. Anode production facilities are operated on-site at our U.S. smelters.

Century has invested significant capital in recent years to increase production and grow our product portfolio. We aim to offer more value-added aluminum products and improve service to our customers in the U.S. and Europe.

Century Aluminum: 2022 at a Glance

• Norðurál was chosen Iceland’s Environmental Company of the Year by the Federation of Icelandic Industries. We are proud of the accomplishments of our employees on environmental and social issues and grateful for the honor shown to the company with this award.
• The Mt Holly Restart Project was completed, with pot no. 270 started on October 24, 2022. Mt. Holly is now operated at 75% capacity.
• Our billet casthouse project in Iceland is ongoing, where 100% renewable energy will be used to process Natur-Al™ aluminum and help reduce the carbon footprint in the value chain of aluminum production. Since this project will have significant, positive environmental impact, it qualified for a green loan from Arion Bank, where these types of loans are granted based on the standards set by the International Securities Markets Association (ISMA).
• In June we announced the temporary idling of Hawesville Smelter due to unprecedented increases of energy prices in the U.S. and around the globe. The power cost required to run the Hawesville facility more than tripled in a short period. Century continues to explore all available options regarding the future of the Hawesville operations.
• We partnered with industrial green technology leader, Ocean GeoLoop, for carbon capture at the Norðurál plant in Iceland. The project aims to capture carbon emissions by deploying a disruptive carbon capture solution. Ocean GeoLoop develops, pilots, and commercializes multifunctional environmental technologies for the capture, utilization, and storage of carbon from flue gas. The Ocean GeoLoop carbon capture solution is characterized by several unique capabilities, as the CO2 separation is 100% clean and can potentially capture 100% of the CO2.
• We are on the path to certify our U.S. plants according to the ISO standards. Quality controls will be ISO 9001 certified, and environmental and safety protocols ISO 14001 and ISO 45001 certified. Preparation for ASI certification for all U.S. plants has also started. Certification is scheduled for 2024. This is the path already taken for our Norðurál plant in Iceland and the Century Aluminum headquarters in Chicago, IL.
• Norðurál received the Gender Equality Award for the second consecutive year. The objective of the award is to achieve a 40/60 gender ratio at top management level.

We firmly believe that market demand for environmentally responsible products will continue to grow, and that Century will play a significant role in the journey towards a sustainable future. Constant improvements to our products and processes contribute not only to our competitiveness and profitability, but to a greener, brighter, and more responsible future for us all.

Recyclable – Strong – Versatile

Aluminum is a key enabler of the transition to a low-carbon and resource-efficient society. Its unique properties, such as virtually unlimited recyclability, strength, lightness, and versatility, help respond to the demands of society today without compromising the ability of future generations to meet their needs. Century applies its specialized knowledge and experience in the primary aluminum industry to deliver consistent, high-quality products to customers, while in turn working to improve the sustainability performance of our own operations.

At Century, we strive to provide innovative and reliable aluminum products to our customers, best-in-class returns for our stakeholders, and a safe and environmentally sustainable workplace for our people and the communities in which we operate. We seek to responsibly operate our businesses to maintain a strong balance sheet through commodity cycles, while making targeted investments to lower our cost structure, expand our production, and increase our competitiveness.

Natur-Al™

A New Brand of Low-Carbon Aluminum

Several years ago, in response to growing consumer demand for increased transparency and disclosure, Century and Norðurál decided to develop Natur-Al™, a new line of environmentally responsible products. We now supply our customers with aluminum to produce products that enable people to genuinely reduce their environmental impact.

Today, Natur-Al™ is a world leader in the field of green aluminum. In order to produce it, we have reviewed the entire production process, from the mining of bauxite to the customer’s final product, i.e. conducted a life-cycle assessment of the aluminum produced by the company.

The analysis is based on the aluminum’s cradle-to-gate life cycle, including the production and transportation of raw materials, local emissions of pollutants, and generation of waste, as well as the transport of the final product to the European market. A model for the entire aluminum value chain was prepared using information from the IAI together with data from Norðurál’s production process. The analysis was carried out in accordance with the ISO standards 4040:2006 and 14044:2006, and the software GaBi from Thinkstep and international data banks were used in its execution. For the analysis, average data across five years of Norðurál’s production process was used in order to get a clear and faithful picture of the process.

This work resulted in the trademark Natur-Al™, which is a registered trademark on both sides of the Atlantic. Aluminum under the trademark Natur-Al™ has a total carbon footprint that is less than four tons of carbon dioxide equivalents per ton of aluminum. Total carbon dioxide equivalent emissions from Natur-Al™ production are less than a quarter of the average emissions from aluminum production around the world, which is generally in the range of 16-18 tons per ton of aluminum. The life-cycle assessment is carried out by an independent party, and we can provide our customers with all data necessary to independently analyze the carbon footprint of consumer products made from Natur-Al™ aluminum. At Century Aluminum we are convinced that product developments such as Natur-Al™ show the way of the future and demonstrate the importance of continued development and innovation in sectors such as ours.

Green Accounting and Certifications

Green Accounting

Green Accounting is an overview of all materials that enter and leave our plants, in the form of raw materials, finished product, waste, or recyclable materials. The aim of Green Accounting is to improve the company’s ability to identify opportunities to increase efficiency, improve processes, reduce waste, and increase general awareness of environmental issues throughout the manufacturing process.

In 2022 our focus was on setting a single framework for the data gathered for green accounting and coordinating data collection and measurement methods across our operations.

ASI Certification

The ASI (Aluminium Stewardship Initiative) is an international association of leading aluminum producers and raw material producers, environmental organizations, and CSR organizations, together with producers of aluminum and aluminum alloy products. The aim of the organization is to encourage corporate social responsibility and environmentally friendly practices in aluminum production and use, from primary raw material processing to final product and aluminum recycling. From mining companies to world-renowned companies in the beverage, automotive, and consumer electronics markets, the association brings together partners from all sectors and from all over the world.

Norðurál and the Century Aluminum headquarters are ASI certified, which confirms that the company’s activities and business practices are socially responsible and outstanding in the area of environmentally responsible production. Preparation for ASI certification for all U.S. plants has started. Certification is scheduled for 2024.

ISO Certifications

ISO standards are based on the so-called Plan-Do-Check-Act (PDCA) philosophy of continuous improvement and require an integrated management system designed to comply with the requirements of the standards. Management systems are maintained through third-party audits, as well as periodic internal evaluations.

Norðurál has an ISO 9001 certified quality management system, and an environment and safety management system certified according to ISO 14001 and ISO 45001 standards. The certification extends to Norðurál’s production of aluminum and alloys. The same certifications will be obtained for all our U.S. plants in 2023-2024.